FGV Annual Integrated Report 2019

11 ANNUAL INTEGRATED REPORT 2019 01 S E C T I O N EMBEDDING SUSTAINABILITY INTO OUR BUSINESS Sustainability Compliance and Certification Sustainability Engagement Sustainability Technical Sustainability Regulation The Board is accountable for the Group’s sustainability strategy and performance. It ensures FGV’s strategy incorporates environmental, social and governance considerations and approves the Sustainability Statement for the Annual Integrated Report 2019 and Sustainability Report 2018/2019. As the Committee that directs and oversees the formulation of the Group’s overall sustainability framework and strategies, it monitors the implementation of the Group’s approved overall sustainability framework and strategies, including principles and policies. It also reviews any Sustainability Report or information that is meant for public consumption and has major financial and/or major reputational impact on the Group. The Group Management Committee is chaired by the GCEO. He also acts as the advisor to the Sustainability Synergy Committee. The GSD reports directly to the GCEO, driving higher accountability and quick decision-making in areas concerning corporate respect for human rights and social responsibility as well as environmental sustainability, which include commitment to a ‘No Deforestation, No Peat, No Exploitation’ (NDPE) policy. Given this newly established reporting structure, the GCEO plays a significant and direct role in overseeing and advising on the overall conduct of the Group’s sustainability efforts and programmes. The Sustainability Synergy Committee comprises the heads or representatives of the various sectors and divisions within FGV Group to facilitate the mainstreaming of sustainability principles and practices throughout FGV, as well as to ensure effective implementation of FGV’s sustainability initiatives and programmes across the board. The Head of the Group Sustainability Division (GSD) directs and oversees the day-to-day work of the GSD and advises the Group on matters pertaining to sustainability, which include aspects relating to human rights and environmental protection. The Head of the GSD also serves as the Chairman of the Sustainability Synergy Committee, with committee members from various Business Sectors. This unit advises the relevant departments and units on all sustainability matters to ensure compliance with relevant standards and requirements of international and local bodies. It also manages the Roundtable on Sustainable Palm Oil (RSPO) auditing and certification process for all complexes in FGV and supports FELDA settlers in preparing for certification audits. In addition, the unit conducts roadshows to promote RSPO benefits to smallholders, monitors and advises on sustainability issues related to estate workers and social compliance, as well as prepares and monitors the implementation of action plans related to labour issues. Apart from overseeing stakeholder management, this unit develops communication plans relating to sustainability management and programmes, and monitors sustainability projects’ progress, budget expenses and governance. This unit establishes methodology to measure, monitor and improve the performance of sustainable key areas. It also compiles data and liaises with external parties on sustainability reporting and programmes, besides participating in environmental education and research. Sustainability Regulation ensures that our policies and procedures are in line with relevant international standards as well as applicable laws and regulations, and monitor issues related to our policy of NDPE. Comprising experts from related fields, the panel provides independent advice and recommendations to FGV on corporate governance and sustainability. BOARD UNITS UNDER SUSTAINABILITY BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE GROUP CHIEF EXECUTIVE OFFICER (GCEO) SUSTAINABILITY SYNERGY COMMITTEE HEAD OF GROUP SUSTAINABILITY DIVISION INDEPENDENT ADVISORY PANEL OUR ORGANISATION